# Public Goods

Sue and Pete are playing Prisoner's Dilemma with the payoffs from the table below. If both of them cooperate, each will get a bonus of $$2A$$ (the public good), if only one cooperates, each will get $$A$$, and if no one cooperates there is no bonus. Sue calculated that Pete will cooperate with probability $$p = 0.3$$. What should be the value of the award $$A$$ so that Sue is indifferent between cooperating and defecting?

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